Real Estate Information Archive

Just yesterday I was meeting with some investor/vacationers/potential buyers about their investment goals and suitable homes for their needs....they, like most everyone nowadays, have been searching the internet for about 2 months before they came down for their vacation this summer and thought they had found the best deals on the island based on the price....they came prepared with about 30 properties, some of them Foreclosures that they thought would suit their needs.(in reality after all their work only about 5 of the ones they selected were going to work for their needs)

With so many types of Homes and villas for sale, and so many desperate sellers, in so many different areas of the island, unless you've been doing this for a while, and are familiar with all the neighborhoods and their locations, amenities, proximity to the beach it can be quite confusing....... when you see a 2 bedroom villa listed for $65,000 on island-----that has to be a great deal right? It all depends........ what are your needs?

It's imperative you find a Realtor who can answer your questions about all areas that may suit your needs, He/she needs to be able to explain why one area is better for you than another,  perhaps point out other areas that would work for you, and then point out the best values in those areas based on your needs.

The internet is a fantastic tool, but with so much property for sale you can save a lot of your time by contacting Realtors early in your search to interview them, or check out their level of knowledge so to speak....tell them a little bit about what you want to use the property for, give them your true targeted price range..A Realtor will be able to send you the best properties for your needs and be able to explain why they are the best options for you. Then once you've learned which areas are best suited for your situation you'll be able to work with that agent to explore any and all possibilities as new options come on the market.

In the end finding and working with an agent early on can save you lots of time and effort scouring the "net" trying to find out:

1) "where is mls 4455599 is located" 2)"what have other comparable properties sold for"? 3) "what kind of rent could I get from this"?

There are lots of great agents here on Hilton Head, and lots of great deals, just need to do a little bit of work to find them both.... 

Obviously, all property owners in Beaufort County have received their new assessed value statements from the assessor's office, I know I was a little shocked to see the valuations for both my personal home and investment properties...the following is from Marsh Rabun, a certified Appraiser in Hilton Head. It may help answer a few more questions for you, or she may be able to help in any challenges you would like to make with the Assessors Office.

Beaufort County Reassessment 2009

 The SC state legislature has mandated a reassessment every 5 years. The last assessment was dated December 31, 2002 so the current assessment date is December 31, 2007. This is necessary to compare all properties in the County at a single point in time.

For a home that has not transferred title, the assessed value of each property in Beaufort County is capped to a 15% increase by a state law passed in 2006. It is capped at the 15% increase, if does not transfer title, for the next 5 years, if no physical changes are made to the property.  For instance, if your assessed value in the last assessment was $300,000, the current capped value could not be higher than $300,000 + 15% of $300,000($45,000) or $345,000.

Also due to the state law passed in 2006, if your home HAS transferred title by sale, to/from a trust, or by will since January 1, 2007, there is a Point of Sale reassessment(AKA Assessable Transfer of Interest) which MAY be greater that the 15% capped assessment on the property had it not transferred. If it transferred in 2008, its value  will be “trended back” to the December 31, 2007 date based on comparable properties-like properties in a similar location selling at that time. 2009 sales have not been considered at this time.               

As a homeowner, you may not be satisfied with your assessed value and may think it needs to be appealed.  There are few important points to remember and consider.

1.       The date of the taxable value placed on your property is December 31, 2007 and that date cannot be changed, although the market value has declined, in some cases significantly declined since that time.  Sales from 2007 and as late as very early 2008 may be considered as comparables, not sales later in 2008 and 2009. Think about what your property was worth in December 2007, not today. Unfortunately, today’s values don‘t count.  

2.       If you feel your property is assessed incorrectly due to significant discrepancies in physical data, -factual errors-in overstating living area  and features, this may be grounds for an appeal. However, if these errors that have been made are in your favor, an appeal may bring them to light and you may end up with a higher but at least more correct assessment. If you have questions about the physical characteristics of your property, you may go to www.bcgov.net, and under Departments, go to Assessor’s and go to Property Max and enter your last name or tax account number to find living area and other features considered.     

3.       The hard working employees of the Beaufort County Assessor’s office have a difficult job in assessing 126,000 parcels equitably and in compliance with state law. They are responsible for providing a market value as of December 31, 2007. However, it is the “Taxable Value” that is important since that is the value that partially determines your taxes. Assessor’s office personnel are available for questions at 843-470-2522(Beaufort, 843-757-1500X 226(Bluffton), 843-341-8411(Hilton Head Island).

4.       If you would like to appeal your taxable value, you have 90 days from the date of the notice from the Assessor’s office to file the appeal.  You can file the appeal yourself, or have an “Authorized” person file an appeal for you. Only certain people may be “Authorized”. Attorneys, CPA’s, Corporate Officers and Full Time Employees, Partners and Fiduciaries, IRS Agents, and SC Licensed and Certified Appraisers may be “authorized” representatives. There are several good appraisers in the area who could act as your authorized representative since they would also be able to do an appraisal of your property as of December 31, 2007 which would be helpful in proving your case. Real estate agents and brokers cannot be authorized to act on your behalf unless they also fall into one of the other categories. Proof of eligibility and written consent from the owner/taxpayer must be provided to the Assessor.

I hope this information has been informative. Please let me know if I or any of my colleagues may assist you in appealing your new taxable value.

Cordially,

Marsha W. Rabun

SC Certified Residential Appraiser #2691

Rabun Associates LLC

P.O Box 23674

Hilton Head Island, SC 29925

Office Phone-(843)686-3344

Cell Phone – (843)384-3214

Email - marsha911@hargray.com

Last week I had the pleasure to catch up with some old friends of mine who were visiting the island with their families(they all have young kids like mine) and they were commenting how great the beaches are here...not to mention the fantastic network of bike trails, lagoon systems, and parks for the kids....Of course I was pleased to hear their comments as these are all things that I believe distinguish Hilton Head from other barrier island and resorts up and down our coast..and are a few of the reasons why more and more people continue to come and visit the island every year......

Interestingly I just read  the latest "best beach" poll on line at MSNBC.com Natural Resources Defense Council 2009 Poll  and found it interesting the poll gives stars for frequent water testing, and it appears those beaches that tested more regularly did so because of a higher probability of issues with the water.....now I may not be reading this correctly, but it seems to me a beach with quality water, water that seems to have tested well since this poll started should rank as high if not higher because of the lack of need for frequent testing.....but that's just my opinion. 

Come and see for yourself if you don't know our beautiful island already....and if Real Estate is something you are interested in please contact me Sean Ryan at www.LiveOnHHI.com I'd love to help you find out all the great opportunities this area has to offer

It's great living here on Hilton Head Island, so many things to do, but as Islanders we sometimes forget about all the great activities we may not be appreciating or taking advantage of. Of course the beaches are the best, and the variety of golf courses can't be beat, and we have more restaraunts then we know what to do with...but there are other fun activites that too.....

Last night we took my Mother in law on a sunset cruise on the Pau Hana-"Pau Hana" roughly translated means -after work-........ an excellent name for a great catamaran that can entertain small private parties or groups up to 50.. It was about a two hour criuse and the beautiful sunset and gentle breezes reminded me of how lucky I am to be able to work and live .... and help so many others find their dream homes, and in a lot of cases make this their permanent home too.

If you are thinking about investing or moving to the area, or just have questions in general about places to eat, sites to see please don't hesitate to give us a call or visit our website at www.liveonhhi.com....we'd love to introduce you to all the area has to offer and put or knowledge and services to work for you.

You may have grown up visiting the Hilton Head Island and Bluffton area and know exactly where you want to be or maybe you are downsizing and have had your next neighborhood in mind for awhile.  Perhaps you are relocating and have heard of many popular gated communities or neighborhoods.

If you are lucky, you will find the location of your dreams right away.  However many home buyers find themselves debating between several neighborhoods determining strengths and weaknesses for each. If on a budget or with children, it is often schools, commuting and finances that dictate location the most.

Here are some suggestions from the  Home Buying for Dummies Book.

1)  Prioritize your needs.
Buying a home on a budget means trade-offs.  For the neighborhood you dream of it may mean purchasing a smaller home.  You must decide what factors are most important to you!

2) Talk to people who live in the neighborhoods.      

People living, working and playing in the community will have the most insight into pros and cons.  Sean Ryan and Associates recommends taking a day or two to walk or at least drive around the neighborhood at a few different times of day.  See how far the closest beach access, gym, park, golf course and coffee shop is.

3) Get the Days-on-Market (DOM) statistics from our team.

DOM statistics show how long the average house takes to sell in an area.  (Ask a team member about this, if a property has been listed by two agents back to back it may only reflect the current listing's DOM.)  Quick sales often indicate strong buyer demand which should make you feel good about the neighborhood you are investing in.

4) Get help from a professional.

This is where we come in!  Home Buying for Dummies suggests speaking to a REALTOR, lender or appraiser to compare the upside potential of home values in each neighborhood.

In the end, only you know what neighborhood will be best for your family.  There are no guarantees with "up-and-coming" neighborhoods, but the more you put into your community the more you will get out of it.  If you have plenty of time to scope out the area before you buy maybe take a Sunday drive through some different parts of the island and surrounding mainland.  You may be surprised the many secret great finds around town. 

Spring has sprung on Hilton Head Island... the azaleas are blooming and the island is beginning to liven up with more traffic and people thinking about how they can carve out their own little piece of paradise.

With the Loonies, among other currencies, being very strong against the US Dollar, it seems everywhere I look there are Canadian license plates in parking lots and on the street and many different accents in pubs, and restaurants.

 In fact just this week I had two Canadian "snowbird"clients looking for investment real estate, and  I helped a Scottish couple purchase their first vacation golf home in Hilton Head Plantation.

It's just a reminder that while our economy here in the states remains in a bit of "ups and downs" this beautiful Island we call home remains a desired destination for folks from all over the world, some with a lot more buying power than in the recent past.

As I like to point out to my investor clients, nothing on Hilton Head has fundamentally changed, and doesn't appear likely that it will. We are drive to destination for not only a huge part of The US, but eastern Canada as well, the Savannah International airport is only an hour away and yet another reason the foreign contingent can get excited about the island.

Mark my words, the market will rebound and those who can look past the "doom and gloom" news and really see how our market is different and fundamentally strong will see the opportunities that are prevalent in the market today.

When the real estate market here in the Hilton Head/Bluffton area is hot, it seems like just about any remodeling project is a good investment and adds value to your home. Just a short time ago, sellers could leave holes in walls, have dirty carpets and still get top dollar. But when the market is tight like it is now, you want to be more selective about which projects you undertake...and what you expect to gain in return. Just the other day I was in an obvious "flip" property and the sellers had made some nice changes, but left a lot to be desired.

If you've been thinking about boosting your home's value or just making your living space more comfortable, the ideas below can help your prioritize your list. So before you start knocking out walls and renovating your roofline, consider these ways to make a difference...cost-effectively!

First Things First. Buyers often decide whether to look at your house before they even get out of the car. They look for “Curb Appeal.” Washing windows, repainting trim, planting flowers, and fixing screen doors can make a big difference. For even more impact, you may want to consider replacing your siding or even adding a patio or deck. The added value for these bigger projects won't yield as high of a return on investment, but may help your house stand out..

Come On In...Make Yourself at Home. Making a cozy first impression is critical. To make sure your entryway invites people to come in--not turn away--try adding a fresh coat of paint to your foyer or a wicker chair and table outside the door. For even more impact, replace those old light fixtures and add a small rug.

Spruce Up That Old Bathroom. Remodeling an old bathroom can make a big impact. For very little money, you can add a new faucet to your sink, a new medicine cabinet on the wall, and even new paint or wallpaper. For a little more, you can update the bathtub, add a double sink, or re-tile the floor.

Even Better: Add a Second Bathroom. Perhaps no improvement makes a bigger impact on your family's comfort and your house's appeal than adding a second bathroom. The number of bathrooms is always a big sticking point for potential buyers, especially families with two or three children. Although adding a bathroom costs more than simply fixing up your old one, it also increases the value of your house more. Plus, having that second bathroom may help you sell your house faster than if it only has one bathroom...an important point to consider in today's market.

Make it Hot in the Kitchen. Renovating an outdated kitchen is practically a sure thing...as long as you don't splurge on extravagant items like hand-painted Italian tile or built-in espresso machines. Instead, focus on the basics: installing new flooring, adding a backsplash and a new coat of paint, re-facing existing cabinets, installing new countertops, and possibly installing new appliances. These go a long way to making a new buyer feel at home.

Remember, start small, work your way up, and always plan ahead. You don't want to get halfway into a renovation only to find that you have to update your entire electrical system or that you forgot to apply for a permit. So, check your local zoning codes before starting any remodeling project. With a little planning and prioritizing, you can make your house more comfortable and valuable with very little time...and money. Keep in mind that the recent drop in rates has spurred both buying and selling activity so whether you are a buyer or seller, home improvements can benefit you!

I just returned from a 1031 tax deffered exchange seminar this morning at the Hilton Head Association of Realtors offices, a little refresher course.. Luckily, I have helped a number of clients through these transactions, so it is not as confusing as it often appears... but still find it amazing that so many of of our clients have never heard of, or are not exactly sure how this IRS code 1031 can benefit them in their real estate investing.

Briefly, the Internal Revenue Code Section 1031 permits the deferral of capital gains taxes on the sale of property held for investment or productive use in a trade or business..

This is a tool anyone looking to sell their current  property, and wanting to move up, down, or simply to another area should know about

In a very simplified example. If Joe bought his Courtside Villa located in South Forest Beach for $200,000 cash, and sells it for $400,000, he'd be looking at paying Capital Gains taxes(anywhere from 15% to 35% depending) on the $200,000.  If Joe decided he wanted to sell his Villa and buy the Oceanfront Villa we have listed at 133 Shorewood  and used the 1031 exchange and reinvested the $400,000 into a "like kind" property he would defer the payment of the capital gains taxes until a later time. If Joe didn't take my advice and sold his villa first, then went and purchased the Oceanfront villa, he would owe the IRS capital gains tax. Simply using this tool he saves himself at a minimum 15%, but possibly much much more.

This is not just for investment properties, all you Baby Boomers out there pay attention, there are even ways to use proceeds from the sale of a primary home towards an investment property thus defferring the payment of capital gains over the allowed $500,000 cap set for couples who sell their current home..... Of course we are not accountants, and we advise all of our clients to consult with their financial advisors or CPA's before proceeding...but those that spend the time to check this out are way ahead of the Average Joe investors out there.

For a more detailed FREE report on the 1031 Tax Deffered Exchange please call 1-800-817-7751 ext 2014.. or Call us 1-800-711-5053 ext 227 to discuss your situation.